These days, the way people find local services like plumbers, electricians, or roofers has changed a lot. If you’re running a home service business, it’s important to understand how this affects you—and how to keep growing your business.
With artificial intelligence (AI) now built into search engines, voice assistants, and chatbots, homeowners connect with the right companies faster and more easily than ever before.
In some industries, AI search results have caused website traffic to drop by 8% to 40%. Click-through rates have also gone down by up to 35% because of AI summaries and searches that give answers without needing to click.
With the rise of generative AI (such as Google’s AI Overviews or Bing’s Copilot), homeowners often see AI-generated summaries and recommendations at the top of search results—sometimes before a single website link appears. These overlays synthesize information from multiple sources, providing instant answers and suggestions
Recent data shows that visitors who come from AI-powered searches are up to four times more likely to become leads or paying customers compared to those who come from traditional Google searches. Nearly 90% of business-to-business buyer journeys now begin with AI assistants, and this shift is rapidly appearing in local consumer search as well.
Meanwhile, platforms such as ChatGPT reached one billion users in only two and a half years, compared to Google’s 13-year path to that milestone, reflecting just how quickly AI-driven habits are taking hold.
SEO isn’t dead—but it is changing fast.
Google still brings in most of the traffic to websites, but the way SEO works is shifting. Instead of just focusing on keywords, it’s now more about matching search intent, creating high-quality content, and showing up across multiple platforms.
While conventional SEO can take six to twelve months to move the needle, AI-optimized content can begin to surface in AI chatbots and search overviews within days or weeks.
The future is not a choice between traditional SEO and AI—success means mastering both, adapting strategy, and continually responding to a profoundly changing search landscape.
It is evolving into a practice that blends intent-focused content, cutting-edge AI optimization, and the fundamentals of site quality and brand trust.
For home service companies, responding rapidly to trends, seasonal service spikes, and local homeowner concerns becomes a new avenue for gaining market share.
Traditional SEO tactics like keyword stuffing, heavy use of marketing copy, or trying to boost domain authority are becoming less effective.
The Impact of AI Search on Local Business SEO
AI is not simply another keyword algorithm; it fundamentally shifts how homeowners discover businesses. The two main search intents for homeowners are:
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Transactional and intent-driven searches (“best HVAC company near me”): These are now dominated by AI overlays providing quick, summary answers and direct recommendations.
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Research and top-of-funnel searches (“what to ask before hiring a roofer”): Here, AI often surfaces recommendations, resources, and top businesses within the first search summary, sometimes before traditional organic links even appear.
This shift requires contractors and service providers to rethink online visibility. Websites, Google Business Profiles, and reviews all contribute to being surfaced in AI-augmented results.
What’s Changing:
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Shift toward user intent and quality: Algorithms focus less on keywords and more on context, conversational content, and genuine expertise.
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Zero-click and AI overlay answers: Many informational queries are now answered within the search engine itself, so click-through rates (CTRs) for traditional listings are decreasing—sometimes up to 34-35% in certain industries.
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Google and AI as gatekeepers: Google still drives over 63% of all U.S. web traffic, so SEO remains critical, but success requires adaptation to new AI-driven ranking factors and modalities.
What Remains True:
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Search engines are still the #1 way people find local businesses. SEO continues to drive more than half of all website traffic for most companies.
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Ranking first in organic still matters: The top organic result receives 27% of clicks in local search—showing the ongoing importance of traditional SEO
How Home Service Companies Can Thrive in the AI-Driven Search Era
AI models are programmed to value content that closely matches the user’s question, includes verifiable data, and sounds like it comes from experienced tradespeople sharing honest advice—not just polished advertisements.
To adapt, companies should focus on producing specific, educational, and conversational content that directly answers common homeowner questions—such as pricing benchmarks, timelines for repairs, or how to recognize issues before they become emergencies.
For example, a well-answered question about the typical cost to replace a water heater in a specific city, delivered honestly and with local data, is more likely to be quoted by an AI system than a generic service page or a salesy landing page.
Repurposing the same content across multiple platforms—blog posts on your website, video walkthroughs on YouTube, Q&A posts in Facebook Groups, or thought leadership articles on LinkedIn—vastly increases the likelihood of being cited by AI.
Prioritize Local Optimization: Ensure business profiles and directories are up to date. AI pulls heavily from these sources.
Develop Conversational Content: Use FAQ pages, how-to guides, and service descriptions designed to answer natural language questions.
Embrace AI Tools: Automate site audits, leverage AI for keyword gap analysis, and use chatbots for lead capture and scheduling.
Encourage Customer Reviews: AI weighs trust signals heavily, so prompt happy customers to leave feedback.
Monitor Performance Metrics Beyond Clicks: Track engagement in AI snippets, brand mentions in overlays, and voice search statistics.
CONCLUSION
AI is revolutionizing how homeowners find and choose local companies. From instant AI summaries to voice and visual search, it’s transforming both expectations and opportunities for local businesses.
Far from being obsolete, SEO remains a foundational requirement—but only for businesses willing to evolve with the new AI-powered search landscape.
Those who leverage both AI and traditional strategies will remain at the forefront of local search and customer acquisition.
Most businesses are still catching up, so if you start now, you’ll be way ahead.
The future is not a choice between traditional SEO and AI—success means mastering both, adapting strategy, and continually responding to a profoundly changing search landscape.
But always remember the most important thing is to be human and make sure homeowners can find and trust you when they need your company’s help.
Technology always changes, but good skills, great service and a strong reputation will always matter the most!
SOURCES:
- https://www.pmmag.com/articles/106558-has-ai-killed-the-need-for-local-seo
- https://researchfdi.com/future-of-seo-ai/
- https://searchengineland.com/ai-break-traditional-seo-agency-model-454317
- https://www.marketingprofs.com/articles/2025/53056/ai-search-optimization-vs-traditional-seo
I’m Moe, the founder of Service Mammoth. I’ve been in home services and marketing for over 25 years and use that knowledge to help businesses grow.
